Problem is Korea has many non-tarrif trade barriers in place to prevent foreign business interests from gaining too big a foot hold. The final price on anything foreign here is pretty ridiculous and relegates most of it to the rich only. First example is designer brand clothing from the US. A pair of designer cut Levi's jeans cost USD $50 ~ 60$ in the states, but that exact same pair costs KRW 250,000 ~ 300,000 won. No sh!t you can go to the nearest Lotte department store, check out the Levi's and other foreign brand sections, write down the model numbers and prices. Then check the PX or Amazon.com and see the going price, its on the order of 3 ~ 4 times difference. And before someone mentions its the outlets, their wrong its not. I asked some friends of mine who work at and manage those department stores why the goods costs so much. They showed me the "luxury tax" that is applied to almost all foreign goods. Its 20 ~ 50% depending on the item, this tax is then used to subsidize various business's.

They do the exact same thing to imported automobiles. Good friend of mine work's at a BMW dealership, I got to check the going prices of locally purchased BMW's (the ones rich Koreans like to show off). I was amazed, their twice as expensive as what you get in the states. Again I asked why and if Korean dealers pay more to BMW for the cars. They pay the exact same price that US dealers pay, but there is two tax's, first being an hefty import tax, second being that luxury tax that I'd noticed before. Combined they end up jacking the car cost to double, and that is before they calculate the additional payment for the engine size. I asked about the luxury tax as it applies to Samsung / Hyundai / Kia and was told that they have a much lower rate because their local brands and that some sports models (Genesis / Forte) don't have a luxury tax on them at all.

For anyone who even wants to attempt to debate this with me, I experienced it first hand when I purchased my BMW. I purchased it direct and had it imported from Germany. I paid the dealership rate but had to wait 3~4 months for it to be manufactured and shipped to Korea and had to pay upfront in cash. When it got to customs, they wanted to charge me the full import + luxury tax + engine fine, it was more then the original price on the car. Luckily A3 visa holders are exempt from those taxes, but I had to do quite a bit of paperwork and fax them all to Incheon. It took almost two weeks to get my car cleared from customs.

This extra price is why there is such high social status attached to foreign cars / branded clothing. To purchase them is a ridiculous amount of money, and such whomever has them must therefor have that money (or their family does). Owning a BMW / Lexus / Audi / Mercedes / or Chevy is considered a badge / status symbol of someone who is successful and/or has connections. Funny part is, when the locals purchase those cars, they tend to purchase the big models with the smallest engine possible (to avoid the big engine fine). Meaning lots of nice looking cars, but very few are actually fast.

Korea’s much like Japan in the protectionist phase of growth; the biggest difference is that with trading partners like the EU and most of Asia, they might not need the US. That raises an uncomfortable conflict between economic priorities and military priorities – why protect a nation that can’t / won’t do business with us?

Then they dump the won. LOL

If the dollar fails, the won fails even faster and worse.

LOL

Excuse me, but it's the US who are holding up the FTA with Korea. Most of Koreans are actually in favor of the FTA with the US. The Americans on the other hand.. have all kinds of reasonings (other then the already mentioned) for not signing the FTA with Korea.

Some of the reasons that I've read include:

1) US shouldn't deal with countries like Korea that exploit their workers with their slave labor with no union rights as the great United States.

2) US shouldn't deal with countries that pollute indiscriminately, unlike the great US where the environment is perfectly protected.

3) US shouldn't deal with countries like Korea which uses child labor.

4) US shouldn't import more cheap quality dangerous goods from Korea – there's enough Walmarts as it is.

5) US has been losing tons of jobs which have moved to Korea, the FTA will just speed up more job relocation out of the US and into Korea.

6) Korea is a filthy poor country full of smelly hicks, they don't have the money to buy high quality American goods like US cars and US made high tech appliances.

http://www.businessweek.com/ap/financialnews/D9BE0SR80.htm

It’s not really critical for Korea to have the FTA with the US, as Korea has successfully diversified their trade with other nations. No big deal.

So who are you to tell other countries what to do and what not to do?

Obviously not many countries are listening to you.

You claim Koreans don't buy foreign goods, then at the same time claim

US beef is selling like hot cakes. Contradictions?

Koreans don't owe you anything.

Cheap quality Samsung's.. you can't even afford them since you can't

afford to buy anything due to overspending on guns and Walmart.